employees must perform at least one year of service. For this purpose, the service requirement could be one in which individuals who work fewer than 1,000 hours during a 12-month period will not be considered to have accrued a year of service.

If any one of the employees meets these requirements, the partnership is not eligible to adopt the SBO-401(k). Business owners should be careful about the eligibility requirements they select for the plan, as they do not want to exclude themselves; if the business owners do not meet the age and service requirements, they too would be excluded.